Payday loans are very short term loans with high interest rates. You can borrow 275$ today and pay 330$ in two weeks. What is the compounded ANNUAL rate implied by this 20% rate charged for only two weeks?
Thanks for the help, I'm assuming Im looking for the EAR, effect annual rate, EAR = (1+APR/M)^m-1 but confused on how to calculate this. Thanks
Thanks for the help, I'm assuming Im looking for the EAR, effect annual rate, EAR = (1+APR/M)^m-1 but confused on how to calculate this. Thanks